Commodity Daily News

Oil Recovers, Rises Above $77.50 a Barrel

Crude oil rose to a seven-week high after a U.S. government report showed an unexpected decline in gasoline supplies as refiners cut operating rates to the lowest level since April. Oil also increased as the dollar fell to a five-month low against a basket of currencies.

Oil and other commodities denominated in dollars for global trading tend to rise when the U.S. currency falls as they become cheaper for holders of other currencies. A move away from dollar-based pricing of the world's leading commodity could further weaken the greenback.

As for today, traders are advised to watch carefully the leading stock markets and the major economic indicators which will be published from the U.S. and euro-zone in order to predict the next movements in oil prices.